Operating income went down at most segments, but the cable division continues to serve shareholders well. When I looked at the company's press release, I had no doubt that I'd be reading about another prosperous quarter for News Corp.'s cable channels. I wasn't disappointed. In fact, if cable ever does tremendously badly one of these quarters, you better watch out, as it might be signaling the end of civilization as we know it. The Fox News Channel is the prized asset, but FX is also doing well.

As I look through the release, one thing is clear to me: Management still hasn't gotten the memo about reducing programming costs. It should strive to reduce all categories of costs and expenses, of course, but those related to content bug me the most. Will the powers that be ever take such a memo seriously? I have my doubts. Hollywood is a tough town; negotiating is both an art and a science, and unfortunately, if you don't have the courage to say no to producers who want unrealistic increases in license fees, then investors will suffer.

Of course, News Corp. isn't going away, expensive talent or not. I'm not inclined to invest in the company, but if you have a desire to hitch your portfolio's wagon to Rupert Murdoch's vision, you'll probably be okay, so long as you hold patiently for more than a year, at the very least. As the economy gets better, so should the advertising market, and thus the prospects of News Corp.'s businesses.

Disclosure: I own Disney, GE; positions can change without notice.